Leighton revenues and orders rise

By Chris Sleight14 August 2009

Wal King, CEO of Leighton Holdings

Wal King, CEO of Leighton Holdings

Financial results for the year ending 30 June showed Leighton's revenues rose +26% to AU$ 18.3 billion (US$ 15.4 billion). It won AU$ 25.1 billion (US$ 21.1 billion) of new work in the year to take the value of its work in hand up +22% to AU$ 31.0 billion (US$ 31.1 billion). However, the groups pre-tax profit was down -24% to AU$ 585 million (US$ 492 million).

The year saw strong revenue increases in Leighton's infrastructure and contract mining businesses, with a fall in its property development arm's activities. Some of the biggest rises in orders were in its mining-related business, including a +60% increase in work in hand in Asia and the Middle East, due in part to an extension of a large contract mining project in Indonesia

Commenting on the results, chief executive Wal King said, "This is our third biggest profit and (it was) recorded in a period when many of our peers and other businesses have reported losses."

He continued, "Our balance sheet was further strengthened during the period with the successful completion of a AU$ 700 million (US$ 589 million) equity raising. The majority of the funds have been invested in mining plant and equipment to support the Group's resources based activities in Australia and Indonesia."

Looking ahead, Mr King said revenues for the next financial year would exceed AU$ 19 billion (US$ 165 billion) and profits after tax would bounce back to about AU$ 600 million (US$ 505 million), compared to AU$ 439 million (US $370 million) this year.

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